Getting Started: Be Own Anchor LP

Short Description:
- For someone who already has generated or inherited wealth, it is possible for one’s own anchor LP. If the GP is making a significant commitment (say millions and in any case 20+% of the fund), it might catalyze other non-institutional LPs.
Benefits:
- Can be quicker to get going.
- Can be a way to demonstrate conviction and skin in the game.
Trade-offs:
- The GP must already have wealth.
- Unlikely to catalyze institutional LPs in a first fund.
- If the GP has a high enough percentage of the fund, it can start to seem like a lot of effort to have LPs who are a relatively low percentage, although this can be offset by the potential for greater LP participation in future funds.